The ongoing legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) recently saw a crucial meeting, which included Ripple co-founder Chris Larsen and newly appointed SEC chairman Paul Atkins. However, former SEC lawyer Mark Feigel believes that this meeting is not enough to end the lawsuit.
Table of Contents
- Significance of the Larsen-Atkins Meeting
- Possibility of an XRP ETF
- Current Status of the Lawsuit
- Expert Opinions
- Conclusion
Significance of the meeting
Paul Atkins, who has previously been a commissioner of the SEC, has recently stressed the need for clear regulation for cryptocurrencies. He has proposed the concept of a “regulatory sandbox”, giving blockchain innovation the opportunity to develop safely.
There is speculation about this meeting that it could be a step towards progress or agreement in the Ripple-SEC case. In addition, the approval of a spot XRP ETF is also likely to be discussed.
Chance of XRP ETF
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Bloomberg’s ETF analyst Eric Balchunas has recently suggested that there is an 85% chance of an XRP ETF being approved in 2025. If this comes true, it would be a significant milestone for Ripple and boost investor confidence.
XRP is currently trading strong around $2.23, although the price had dropped slightly to $2.12 after the SEC delayed its review of several crypto-related filings.
Status of the lawsuit
The legal battle between Ripple and the SEC has been ongoing since December 2020, with the SEC accusing Ripple of selling the XRP token as a security without registering it. In August 2024, a federal judge ordered Ripple to pay a $125 million fine. Both Ripple and the SEC have filed appeals against this decision.
Experts’ opinion
Former SEC lawyer Mark Feigel said on social media, “No. It doesn’t work that way.” He believes that it is not reasonable to expect a resolution to the lawsuit from this meeting.
However, Ripple’s Chief Legal Officer Stuart Alderoty has expressed hope that under the SEC’s new leadership, particularly under Paul Atkins, the agency may back off from enforcement actions against crypto companies, especially in cases where the main concern is simply a lack of registration.
Conclusion
While Larsen and Atkins’ meeting may be a ray of hope for the crypto community, experts believe that this meeting alone will not resolve the Ripple-SEC lawsuit. With the litigation process and regulatory changes, further developments are likely in this case in the coming months.
For crypto investors and XRP holders, it will be important to keep an eye on the progress of this case, as its outcome will not only affect Ripple’s future, but will also have an impact on the broader crypto industry.
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